EX-99.1 2 mcep-ex991_6.htm EX-99.1 mcep-ex991_6.htm

Exhibit 99.1

 

 

Mid-Con Energy Partners, LP Announces Third Quarter 2019 Operating and Financial Results

TULSA, October 30, 2019 (GLOBE NEWSWIRE) -- Mid-Con Energy Partners, LP (NASDAQ: MCEP) (“Mid-Con Energy” or the “Partnership”) announced today its operating and financial results for third quarter 2019.

“We significantly increased our development efforts during the third quarter of 2019,” said President and Chief Executive Officer, Jeff Olmstead. “The capital spent was primarily focused on de-risking our long-term development opportunities in Oklahoma and Wyoming, as well as injection progress at our Pine Tree unit in Wyoming. We drilled and cored two wells in some of our recently acquired assets in Oklahoma that signal the opportunity for new waterfloods in those properties. Operationally, we were able to keep production largely flat from the previous quarter while focusing on de-risking development opportunities. Expenses were higher than forecasted due to some unexpected costs that we believe to be one-time in nature. Going forward, we expect to continue reducing debt, while focusing on increasing production and reserves through organic development opportunities, all out of cash flow from operations.”

HIGHLIGHTS AND RECENT DEVELOPMENTS – Quarter ended September 30, 2019

 

Net income was $6.0 million for the third quarter of 2019.

 

Generated positive cash flows from operating activities for the third quarter of 2019 of $5.9 million.

 

Continued to reduce outstanding borrowings on our revolving credit facility by $1.0 million during third quarter 2019.

 

Unitization of our Wyoming waterflood project was formally approved in the third quarter of 2019. First injection was achieved in the second quarter of 2019 and expansion of the waterflood continued in the third quarter with additional wells being converted to injection and activation planned for the fourth quarter.

 

In the third quarter of 2019, the Partnership: drilled two wells in two fields in Oklahoma; returned 40 wells to production in Oklahoma (27 of these wells were acquired in the second quarter of 2019); executed five re-stimulations and returned five wells to active water injection in our Wyoming assets. Results of our completed third quarter capital 2019 projects are currently being evaluated for the purpose of high grading and further refining our future capital plans.

FINANCIAL SUMMARY

Production for third quarter 2019 averaged 3,543 Boe/d, which was comparable to 3,538 Boe/d in the second quarter of 2019. Commodity pricing decreased during the third quarter 2019 as the average realized oil price after derivatives was $52.05 versus $55.20 per barrel in second quarter 2019.

Lease operating expenses (“LOE”) were $8.3 million ($25.44 per Boe) compared to $7.6 million ($23.56 per Boe) in the second quarter of 2019. The majority of the increase was due to the recently acquired properties in Oklahoma and is expected to be non-recurring as it relates to assimilating those properties in the Partnership’s portfolio.

The Partnership spent $4.3 million on capital expenditures during the third quarter of 2019. The increased capital spend was related to drilling two new wells in central Oklahoma, re-completion programs in House Creek and Worland, both located in Wyoming, continued progress on the Pine Tree waterflood project in Wyoming and returning 40 wells to production status in Northeast Oklahoma. The capital spend from most of these projects will continue into fourth quarter 2019.

The decrease in oil and natural gas revenues and the increase in LOE lowered third quarter Adjusted EBITDA(1) to $4.4 million from $5.1 million in the second quarter of 2019. During the third quarter, the Partnership continued to lower debt by $1.0 million to $65.0 million outstanding as of September 30, 2019. As of October 25, 2019, debt outstanding was $67.0 million.

(1) Non-GAAP financial measure. Please refer to the related disclosure and reconciliation of net income (loss) to Adjusted EBITDA included in this press release.


HEDGING SUMMARY

Mid-Con Energy enters into various commodity derivative contracts intended to achieve more predictable cash flows by reducing the Partnership’s exposure to short-term fluctuations in oil prices. We believe this risk management strategy will serve to secure a portion of our revenues and, by retaining some opportunity to participate in upward price movements, may also enable us to realize higher revenues during periods when prices rise.

As of September 30, 2019, the following table reflects volumes of Mid-Con Energy’s production hedged by commodity derivative contracts, with the corresponding prices at which the production is hedged:

 

Period Covered

 

Differential Fixed Price

 

 

Weighted Average Fixed Price

 

 

Weighted Average Floor Price

 

 

Weighted Average Ceiling Price

 

 

Total Bbls

Hedged/day

 

 

Index

Swaps - 2019

 

$

 

 

$

56.05

 

 

$

 

 

$

 

 

 

1,664

 

 

NYMEX-WTI

Swaps - 2019

 

$

(20.15

)

 

$

 

 

$

 

 

$

 

 

 

150

 

 

WCS-CRUDE-OIL

Swaps - 2020

 

$

 

 

$

55.81

 

 

$

 

 

$

 

 

 

1,931

 

 

NYMEX-WTI

Swaps - 2021

 

$

 

 

$

55.78

 

 

$

 

 

$

 

 

 

672

 

 

NYMEX-WTI

Collars - 2021

 

$

 

 

$

 

 

$

52.00

 

 

$

58.80

 

 

 

672

 

 

NYMEX-WTI

FISCAL YEAR 2019 GUIDANCE

The following outlook is subject to all the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. These estimates and assumptions reflect management’s best judgment based on current and anticipated market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control.

 

Guidance as of October 30, 2019

 

FY 2019

Net production (Boe/d)(1)

 

3,500 - 3,600

Lease operating expenses per Boe

 

$22.00 - $24.00

Production and ad valorem taxes (% of total revenue)

 

8.00% - 9.00%

Estimated capital expenditures

 

$11.0 MM

(1) Production volumes in Boe equivalents calculated at a rate of six Mcf per Bbl.

THIRD QUARTER 2019 CONFERENCE CALL

As announced on October 24, 2019, Mid-Con Energy’s management will host a conference call on Thursday, October 31, 2019, at 9:00 a.m. ET. Interested parties are invited to participate via telephone by dialing 1-877-847-5946 (Conference ID: 6689305) at least five minutes prior to the scheduled start time of the call, or via webcast by clicking on "Events & Presentations” in the investor relations section of the Mid-Con Energy website at www.midconenergypartners.com. A replay of the conference call will be available through Thursday, November 7, 2019, by dialing 1-855-859-2056 (Conference ID: 6689305). Additionally, a webcast archive will be available at www.midconenergypartners.com.

ABOUT MID-CON ENERGY PARTNERS, LP

Mid-Con Energy is a publicly held Delaware limited partnership formed in July 2011 to own, acquire and develop producing oil and natural gas properties in North America, with a focus on Enhanced Oil Recovery. Mid-Con Energy’s core areas of operation are located primarily in Oklahoma and Wyoming. For more information, please visit Mid-Con Energy’s website at www.midconenergypartners.com.

FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements” — that is, statements related to future, not past, events within meaning of the federal securities laws. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “estimate,” “intend,” “expect,” “plan,” “project,” “should,” “goal,” “forecast,” “guidance,” “could,” “may,” “continue,” “might,” “potential,” “scheduled,” “pursue,” “target,” “will” and the negative of such terms or other comparable terminology. These forward-looking statements involve certain risks and uncertainties and ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements due to a number of factors including but not limited to volatility of commodity prices; revision to oil and natural gas reserves estimates as a result of changes in commodity prices; effectiveness of risk management activities; business strategies; future financial and

 


operating results; ability to replace the reserves we produce through acquisitions and the development of our properties; future capital requirements and availability of financing; realized oil and natural gas prices; production volumes; lease operating expenses; general and administrative expenses; cash flow and liquidity; availability of production equipment; availability of oil field labor; capital expenditures; availability and terms of capital; marketing of oil and natural gas; general economic conditions; competition in the oil and natural gas industry; environmental liabilities; compliance with NASDAQ listing requirements; and any other risks and uncertainties discussed in our Form 10-K and other filings with the SEC.

Mid-Con Energy undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement and our SEC filings. Please see the risks and uncertainties detailed in the “Forward-Looking Statements” and “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2018, and in other documents and reports we file from time to time with the SEC.

 

 

 

 

 


Mid-Con Energy Partners, LP and subsidiaries

 

Condensed Consolidated Balance Sheets

 

(in thousands, except number of units)

 

(Unaudited)

 

 

 

 

 

 

 

September 30, 2019

 

 

December 31, 2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

467

 

 

$

467

 

Accounts receivable

 

 

5,243

 

 

 

4,194

 

Derivative financial instruments

 

 

2,133

 

 

 

5,666

 

Prepaid expenses

 

 

237

 

 

 

118

 

Assets held for sale

 

 

430

 

 

 

430

 

Total current assets

 

 

8,510

 

 

 

10,875

 

Property and equipment

 

 

 

 

 

 

 

 

Oil and natural gas properties, successful efforts method

 

 

 

 

 

 

 

 

Proved properties

 

 

261,411

 

 

 

379,441

 

Unproved properties

 

 

3,563

 

 

 

2,928

 

Other property and equipment

 

 

1,360

 

 

 

427

 

Accumulated depletion, depreciation, amortization and impairment

 

 

(74,426

)

 

 

(175,948

)

Total property and equipment, net

 

 

191,908

 

 

 

206,848

 

Derivative financial instruments

 

 

3,630

 

 

 

2,418

 

Other assets

 

 

995

 

 

 

1,563

 

Total assets

 

$

205,043

 

 

$

221,704

 

 

 

 

 

 

 

 

 

 

LIABILITIES, CONVERTIBLE PREFERRED UNITS AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

 

 

 

 

 

Trade

 

$

187

 

 

$

141

 

Related parties

 

 

5,678

 

 

 

3,732

 

Accrued liabilities

 

 

449

 

 

 

2,024

 

Other current liabilities

 

 

422

 

 

 

 

Total current liabilities

 

 

6,736

 

 

 

5,897

 

Long-term debt

 

 

65,000

 

 

 

93,000

 

Other long-term liabilities

 

 

567

 

 

 

47

 

Asset retirement obligations

 

 

30,534

 

 

 

26,001

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Class A convertible preferred units - 11,627,906 issued and outstanding, respectively

 

 

22,642

 

 

 

21,715

 

Class B convertible preferred units - 9,803,921 issued and outstanding, respectively

 

 

14,780

 

 

 

14,635

 

Equity, per accompanying statements

 

 

 

 

 

 

 

 

General partner

 

 

(702

)

 

 

(786

)

Limited partners - 30,824,291 and 30,436,124 units issued and outstanding, respectively

 

 

65,486

 

 

 

61,195

 

Total equity

 

 

64,784

 

 

 

60,409

 

Total liabilities, convertible preferred units and equity

 

$

205,043

 

 

$

221,704

 

 

 


Mid-Con Energy Partners, LP and subsidiaries

 

Condensed Consolidated Statements of Operations

 

(in thousands, except per unit data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

15,468

 

 

$

18,765

 

 

$

46,854

 

 

$

49,240

 

Natural gas sales

 

 

283

 

 

 

380

 

 

 

930

 

 

 

812

 

Other operating revenues

 

 

271

 

 

 

320

 

 

 

983

 

 

 

320

 

Gain (loss) on derivatives, net

 

 

5,730

 

 

 

(6,358

)

 

 

(3,072

)

 

 

(19,240

)

Total revenues

 

 

21,752

 

 

 

13,107

 

 

 

45,695

 

 

 

31,132

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

 

8,293

 

 

 

6,246

 

 

 

22,710

 

 

 

15,895

 

Production and ad valorem taxes

 

 

1,333

 

 

 

1,565

 

 

 

4,084

 

 

 

3,803

 

Other operating expenses

 

 

536

 

 

 

288

 

 

 

1,426

 

 

 

288

 

Impairment of proved oil and natural gas properties

 

 

180

 

 

 

 

 

 

384

 

 

 

9,710

 

Depreciation, depletion and amortization

 

 

2,559

 

 

 

4,812

 

 

 

8,026

 

 

 

11,646

 

Dry holes and abandonments of unproved properties

 

 

 

 

 

10

 

 

 

 

 

 

195

 

Accretion of discount on asset retirement obligations

 

 

423

 

 

 

404

 

 

 

1,168

 

 

 

748

 

General and administrative

 

 

1,404

 

 

 

1,494

 

 

 

6,414

 

 

 

4,746

 

Total operating costs and expenses

 

 

14,728

 

 

 

14,819

 

 

 

44,212

 

 

 

47,031

 

(Loss) gain on sales of oil and natural gas properties, net

 

 

 

 

 

(1

)

 

 

9,692

 

 

 

(389

)

Income (loss) from operations

 

 

7,024

 

 

 

(1,713

)

 

 

11,175

 

 

 

(16,288

)

Other (expense) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1

 

 

 

1

 

 

 

10

 

 

 

3

 

Interest expense

 

 

(1,175

)

 

 

(1,620

)

 

 

(4,019

)

 

 

(4,369

)

Other income

 

 

4

 

 

 

20

 

 

 

53

 

 

 

20

 

Gain on sale of other assets

 

 

123

 

 

 

 

 

 

123

 

 

 

 

(Loss) gain on settlements of asset retirement obligations

 

 

(16

)

 

 

(37

)

 

 

(72

)

 

 

12

 

Total other expense

 

 

(1,063

)

 

 

(1,636

)

 

 

(3,905

)

 

 

(4,334

)

Net income (loss)

 

 

5,961

 

 

 

(3,349

)

 

 

7,270

 

 

 

(20,622

)

Less: Distributions to preferred unitholders

 

 

1,166

 

 

 

1,148

 

 

 

3,472

 

 

 

3,303

 

Less: General partner's interest in net income (loss)

 

 

69

 

 

 

(39

)

 

 

84

 

 

 

(243

)

Limited partners' interest in net income (loss)

 

$

4,726

 

 

$

(4,458

)

 

$

3,714

 

 

$

(23,682

)

Limited partners' interest in net income (loss) per unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.15

 

 

$

(0.14

)

 

$

0.12

 

 

$

(0.78

)

Diluted

 

$

0.09

 

 

$

(0.14

)

 

$

0.07

 

 

$

(0.78

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average limited partner units outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Limited partner units (basic)

 

 

30,811

 

 

 

30,392

 

 

 

30,743

 

 

 

30,292

 

Limited partner units (diluted)

 

 

53,189

 

 

 

30,392

 

 

 

53,142

 

 

 

30,292

 

 

 

 


Mid-Con Energy Partners, LP and subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

(in thousands)

 

(Unaudited)

 

 

 

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,270

 

 

$

(20,622

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

8,026

 

 

 

11,646

 

Debt issuance costs amortization

 

 

533

 

 

 

503

 

Accretion of discount on asset retirement obligations

 

 

1,168

 

 

 

748

 

Impairment of proved oil and natural gas properties

 

 

384

 

 

 

9,710

 

Dry holes and abandonments of unproved properties

 

 

 

 

 

195

 

Loss (gain) on settlements of asset retirement obligations

 

 

72

 

 

 

(12

)

Cash paid for settlements of asset retirement obligations

 

 

(96

)

 

 

(102

)

Mark to market on derivatives

 

 

 

 

 

 

 

 

Loss on derivatives, net

 

 

3,072

 

 

 

19,240

 

Cash settlements paid for matured derivatives, net

 

 

(750

)

 

 

(5,988

)

Cash premiums paid for derivatives

 

 

 

 

 

(200

)

(Gain) loss on sales of oil and natural gas properties

 

 

(9,692

)

 

 

389

 

Gain on sale of other assets

 

 

(123

)

 

 

 

Non-cash equity-based compensation

 

 

577

 

 

 

670

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,246

)

 

 

(3,109

)

Prepaid expenses and other assets

 

 

(84

)

 

 

(76

)

Accounts payable - trade and accrued liabilities

 

 

(226

)

 

 

689

 

Accounts payable - related parties

 

 

1,537

 

 

 

2,452

 

Net cash provided by operating activities

 

 

10,422

 

 

 

16,133

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Acquisitions of oil and natural gas properties

 

 

(3,296

)

 

 

(21,626

)

Additions to oil and natural gas properties

 

 

(9,363

)

 

 

(6,072

)

Proceeds from sales of oil and natural gas properties

 

 

32,514

 

 

 

1,163

 

Proceeds from sale of other assets

 

 

123

 

 

 

 

Net cash provided by (used in) investing activities

 

 

19,978

 

 

 

(26,535

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

8,000

 

 

 

20,000

 

Payments on line of credit

 

 

(36,000

)

 

 

(23,000

)

Debt issuance costs

 

 

 

 

 

(651

)

Proceeds from sale of Class B convertible preferred units, net of offering costs

 

 

 

 

 

14,847

 

Distributions to Class A convertible preferred units

 

 

(1,500

)

 

 

(2,000

)

Distributions to Class B convertible preferred units

 

 

(900

)

 

 

(500

)

Net cash (used in) provided by financing activities

 

 

(30,400

)

 

 

8,696

 

Net decrease in cash and cash equivalents

 

 

 

 

 

(1,706

)

Beginning cash and cash equivalents

 

 

467

 

 

 

1,832

 

Ending cash and cash equivalents

 

$

467

 

 

$

126

 

 


 

Mid-Con Energy Partners, LP and subsidiaries

 

Production, Prices, and Unit Costs per Boe

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

September 30,

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

 

% Change

 

 

2019

 

 

2018

 

 

Change

 

 

% Change

 

Production Volumes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (MBbls)

 

 

294

 

 

 

309

 

 

 

(15

)

 

(5%)

 

 

 

877

 

 

 

798

 

 

 

79

 

 

10%

 

Natural gas (MMcf)

 

 

193

 

 

 

139

 

 

 

54

 

 

39%

 

 

 

498

 

 

 

317

 

 

 

181

 

 

57%

 

Total (MBoe)

 

 

326

 

 

 

332

 

 

 

(6

)

 

(2%)

 

 

 

960

 

 

 

851

 

 

 

109

 

 

13%

 

Average daily net production (Boe/d)

 

 

3,543

 

 

 

3,609

 

 

 

(66

)

 

(2%)

 

 

 

3,516

 

 

 

3,117

 

 

 

399

 

 

13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average sales price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (per Bbl)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

52.61

 

 

$

60.73

 

 

$

(8.12

)

 

(13%)

 

 

$

53.43

 

 

$

61.70

 

 

$

(8.27

)

 

(13%)

 

Effect of net settlements on matured derivative instruments

 

$

(0.56

)

 

$

(8.69

)

 

$

8.13

 

 

94%

 

 

$

(0.86

)

 

$

(7.75

)

 

$

6.89

 

 

89%

 

Realized oil price after derivatives

 

$

52.05

 

 

$

52.04

 

 

$

0.01

 

 

0%

 

 

$

52.57

 

 

$

53.95

 

 

$

(1.38

)

 

(3%)

 

Natural gas (per Mcf)

 

$

1.47

 

 

$

2.73

 

 

$

(1.26

)

 

(46%)

 

 

$

1.87

 

 

$

2.56

 

 

$

(0.69

)

 

(27%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average unit costs per Boe

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

$

25.44

 

 

$

18.81

 

 

$

6.63

 

 

35%

 

 

$

23.66

 

 

$

18.68

 

 

$

4.98

 

 

27%

 

Production and ad valorem taxes

 

$

4.09

 

 

$

4.71

 

 

$

(0.62

)

 

(13%)

 

 

$

4.25

 

 

$

4.47

 

 

$

(0.22

)

 

(5%)

 

Depreciation, depletion and amortization

 

$

7.85

 

 

$

14.49

 

 

$

(6.64

)

 

(46%)

 

 

$

8.36

 

 

$

13.69

 

 

$

(5.33

)

 

(39%)

 

General and administrative expenses

 

$

4.31

 

 

$

4.50

 

 

$

(0.19

)

 

(4%)

 

 

$

6.68

 

 

$

5.58

 

 

$

1.10

 

 

20%

 

 


NON-GAAP FINANCIAL MEASURE

This press release, the financial tables and other supplemental information include “Adjusted EBITDA” which is a non-generally accepted accounting principles (“Non-GAAP”) measure used by our management to describe financial performance with external users of our financial statements. The Partnership believes the Non-GAAP financial measure described above is useful to investors because this measurement is used by many companies in its industry as a measurement of financial performance and is commonly employed by financial analysts and others to evaluate the financial performance of the Partnership and to compare the financial performance of the Partnership with the performance of other publicly traded partnerships within its industry. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

Adjusted EBITDA is defined as net income (loss) plus (minus):

 

Interest expense, net;

 

Depreciation, depletion and amortization;

 

Accretion of discount on asset retirement obligations;

 

(Gain) loss on derivatives, net;

 

Cash settlements received (paid) for matured derivatives, net;

 

Cash premiums received (paid) for derivatives, net;

 

Impairment of proved oil and natural gas properties;

 

Non-cash equity-based compensation;

 

(Gain) loss on sale of other assets;

 

(Gain) loss on sales of oil and natural gas properties, net; and

 

Dry holes and abandonments of unproved properties.

 

Mid-Con Energy Partners, LP and subsidiaries

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

(in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30, 2019

 

 

June 30, 2019

 

 

September 30, 2018

 

Net income (loss)

 

$

5,961

 

 

$

5,097

 

 

$

(3,349

)

Interest expense, net

 

 

1,174

 

 

 

1,228

 

 

 

1,619

 

Depreciation, depletion and amortization

 

 

2,559

 

 

 

2,369

 

 

 

4,812

 

Accretion of discount on asset retirement obligations

 

 

423

 

 

 

417

 

 

 

404

 

Impairment of proved oil and natural gas properties

 

 

180

 

 

 

204

 

 

 

 

Dry holes and abandonments of unproved properties

 

 

 

 

 

 

 

 

10

 

(Gain) loss on derivatives, net

 

 

(5,730

)

 

 

(3,396

)

 

 

6,358

 

Cash settlements paid for matured derivatives, net

 

 

(164

)

 

 

(729

)

 

 

(2,483

)

Cash premiums paid for derivatives

 

 

 

 

 

 

 

 

(200

)

Non-cash equity-based compensation

 

 

121

 

 

 

122

 

 

 

303

 

Gain on sales of other assets

 

 

(123

)

 

 

 

 

 

 

(Gain) loss on sales of oil and natural gas properties, net

 

 

 

 

 

(223

)

 

 

1

 

Adjusted EBITDA

 

$

4,401

 

 

$

5,089

 

 

$

7,475

 

 

INVESTOR RELATIONS CONTACT

IR@midcon-energy.com

(918) 743-7575